Global Freight Solutions has been located in Los Angeles for over 19 years and during that time we’ve seen the demand for food warehousing rise and fall, but over the past year it has spiked considerably. In this post, we’ll touch on some of the reasons for the high demand.
First and foremost, it’s important to understand that food storage is unlike other kinds of warehousing (e.g. having palettes of non-perishable products sitting on a shelf) and it requires unique expertise as well as certifications. For example, it was a long, costly process but we recently received our Safe Quality Foods (SQF) certification, which many food companies are now requiring. Simply said, warehousing food is a whole different animal.
Secondly, when it comes to refrigerated and frozen storage, acquiring the right equipment is costly upfront but ongoing maintenance and upgrades are also expensive. This has caused some Los Angeles food warehouses to shut down because the capital investment needed to modernize their facilities just did not make sense. In the end, the need for food storage is still high but the number of food warehouses is declining, which is ultimately driving the demand.
Our plans for 2018 and beyond are heavily focused around the food industry and we see ways to expand while other providers are contracting. The goal is to offer food companies the highest quality customer service and warehousing while also a fair price.